Volkswagen Faces Greater Scrutiny as Investigation into Dieselgate Grows

By Paul Riegler on 15 October 2015
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DSC_0801 (1)The Justice Department’s Fraud Section and the U.S. attorney’s office in Detroit both announced investigations into the Volkswagen case on Thursday.

These agencies join others in looking into what has become a worldwide scandal for the world’s largest automaker.

Current investigations are underway at the Federal Trade Commission, which is investigating potentially fraudulent claims for misleading advertising on Volkswagen’s claims regarding fuel economy and emissions, and at the Environment and Natural Resources Division of the Department of Justice. The Environmental Protection Agency, which broke the news of the automaker’s use of a software defeat device that sensed when an emissions test was in progress and altered the vehicle’s performance in September, could pursue billions of dollars in fines due to the large number of vehicles involved in the deceit.

The EPA said that it appeared Volkswagen violated several parts of the Clean Air Act through its actions. While the sale of automobiles that do not meet emissions standards is a civil, not criminal, offense, providing false information to government regulators is.

Earlier on Thursday, the Wolfsburg-based automaker announced that it would recall 8.5 million diesels in 28 European markets including 2.5 million in its home market of Germany.

(Photo: Accura Media Group)